Nine U.S. states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though Washington taxes high-earner capital gains, and New Hampshire used to tax interest/dividends (repealed in 2025). While moving to these states can save on income tax, residents still pay other taxes (sales, property) that can offset savings, so it's crucial to consider the overall tax burden and cost of living.
Nine U.S. states levy no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.
1. Wesley Snipes – Ignoring Tax Obligations Doesn't Work. One of the most infamous celebrity tax cases involves actor Wesley Snipes, who was sentenced to three years in prison for tax evasion. Snipes failed to file tax returns for several years, owing millions to the IRS.
States with the lowest taxes
Who Does Not Have to Pay Taxes? You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.
Pop superstar Beyoncé and the IRS agree that she owes $709.20 in tax and penalties instead of the nearly $2.7 million that the agency had asserted in a deficiency notice, according to a stipulated decision approved by the Tax Court . The decision document in Knowles-Carter v.
Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries. There is a caveat to this though.
Al Capone. A federal grand jury indicted notorious gangster Al Capone, leader of the Chicago Outfit crime syndicate, with 22 counts of tax evasion totaling over $200,000 in 1931 (equivalent to more $3.8 million today).
In some years, billionaires such as Jeff Bezos, Elon Musk and George Soros paid no federal income taxes at all. Billionaires avoid these taxes by taking out special ultra-low-interest loans available only to them and using their assets as collateral.
Nicolas Cage owed the IRS a significant amount, with liens totaling around $14 million by 2009-2010, stemming from unpaid 2007 taxes and other years, which he addressed by taking numerous film roles to pay off the debt after blaming a former business manager for financial mismanagement.
Here's the key insight: while Swift remains a US tax resident who pays taxes on worldwide income, expats doing comparable work abroad can apply her tax strategies while ALSO leveraging powerful expat benefits she can't access.
It's not inherently better, but living in a state with no income tax can be financially advantageous by increasing take-home pay, especially for high earners, retirees, and business owners, as it simplifies taxes and keeps more income for savings or investments. However, these states often compensate with higher sales, property, or excise taxes, meaning the overall tax burden and cost of living (housing, insurance) must be considered, as a lack of income tax doesn't always mean lower overall costs or better public services.
Tax Free Income jobs
The best U.S. "tax haven" states, known for low overall tax burdens, are generally Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, as these states lack a personal income tax, with some also avoiding sales or other major taxes. However, no income tax often means higher reliance on sales or property taxes, so the overall tax burden depends on individual spending and property ownership, with Wyoming, South Dakota, and New Hampshire often ranking highest for overall tax competitiveness.
According to the SSA, the home you live in and the land it is on are not counted as resources when determining your SSI eligibility. This is known as the “home exclusion.” Whether you own the home outright or have a mortgage, as long as it's your primary residence, it won't affect your SSI benefits.
Florida's approach to property tax relief
Earlier this year, Florida Governor Ron DeSantis proposed eliminating property taxes for homesteaded properties altogether and wants to have a constitutional amendment on the November 2026 ballot which would require 60% voter approval to pass.
His 2017 Tax Cuts and Jobs Act reduced individual and corporate tax rates. In 2025, his proposals include further reductions for middle-income earners and business owners, but they do not eliminate or forgive IRS tax debt.
The most famous tax evader is often considered to be mob boss Al Capone, who was finally convicted in 1931 for failing to pay taxes on his vast illegal income, leading to his imprisonment; other famous figures include actress Sophia Loren, singer Willie Nelson, businesswoman Leona Helmsley, and actor Wesley Snipes, all known for different reasons for skirting tax laws.
But how people define “upper class” differs. Some say you'd need to be making twice the median income, or around $167,460. Even more elite are those who find themselves in the top 5 percent of earners. In the U.S., you'd need to be making about $336,000 to find yourself in the top 5 percent, according to Census data.